Something Wicked?

Technical analysis and chart patterns are sometimes regarded as akin to witchcraft. Yet, fairly often, they prove incredibly accurate in forecasting reversal points and targets.

In honor of the latest such eerily accurate forecast, and since tomorrow is Halloween, we’ll take a fresh look at whether something wicked this way comes.

And, since many investors are very nervous at the moment, we’re offering a wicked smaht membership promotion. Through Nov 3, we’ll knock $60 off the initial month of a monthly subscription and $100 off the initial quarter of a quarterly subscription. To sign up, CLICK HERE.

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Back on Oct 12 [see: A Cure?] as the market’s daily meltups inspired the tongue-in-cheek observation that central bankers might have found a cure for market corrections, we noted that the latest rally might have finally run its course:

ES just reached its .886 retracement, meaning we are very likely to see a reversal here. My favorite target remains the yellow channel midline, currently at 3218ish.

This morning, ES backtested that yellow channel midline (now at 3226) for a garden variety 8.9% correction. [Note: we adjusted the price target to 3225 and the timing to Oct 30 the next day.]While the charts have been good to us, the question remains: is a garden variety correction all we’ll get, or is something more wicked coming our way?